The motivation is that they are insolvent with negative 500 million shareholder equity. So they sell more shares whenever possible to stay in business. more or less. The only reason the stock is over $2 share is because people love to believe that maybe the lowest priced home building stock might be a lottery pick. At over $5 though it is hard for me to understand how it could be a good investment given they have negative $5/share book value and havn't paid a dividend on the preferred stock since 2007 and it trades at 45 cents on the dollar. To justify $5/share, you have to believe they could earn $500 million or more over the next few years to erase the shareholder deficit. I don't believe that is likely, given their high debt burden with high interest rates.